Industrial Structure,Market Structure And FDI

Since adopting open-door policy, China has witnessed the booming and advancing of its attraction of foreign direct investment (FDI). With the expedite inflow of FDI, the growth of China's economic scale has been energized, ,the upgrading of China's industrial structure has been accelerated and the impact on the market structure has been made.This thesis constructs a theoretical framework to analyze the effect of FDI on the industrial structures and market structure of the host country. Such effects, as analyzed, result from the interaction between the investor and the host country.Based on the theoretical analyses, this thesis introduces the empirical analysis of the FDI's influence on the industrial structure. This thesis investigates the accumulative distribution of the FDI in the three industries, and launches regression and causality analysis on the relationship between FDI's distribution and the structure of the three industries. In the case of the industry, which is most affected by FDI, investigations are made to classify the different influence of FDI on the Light and Heavy industries, on the technology advancement, and on the efficiency of industrial resource location. This thesis also discusses the role of FDI on the market structure with two steps, firstly analyzing how FDI breaks through and rebuilds the barrier to entry into China's market, and, then analyzing the impact on the concentration in China's market.The upgrading of industrial structure has great influence on China's economic growth. A disequilibrium economic growth model and Econometric model are built and decompositions of GDP growth in inter-industry sectors are made, in order to discuss the impact of industrial structure on economic growth.Based on the analysis mentioned above, some relative pieces of policy are brought forward in the last chapter of this thesis, in accordance with the new situations with China's entry into WTO.